Topline
Stock markets across Asia were hit by a massive selloff on Monday, while U.S. stock futures also tumbled after last week’s worse-than-expected U.S. jobs report triggered renewed fears of a recession.
Japanese stocks were the worst hit on Monday morning as the marquee Nikkei 225 index fell by more … [+]
Key Facts
Japan’s Nikkei 225 index was down more than 12.4% to 31,458.42 points late on Monday afternoon, while the Tokyo Stock Price Index (TOPIX) slumped more than 12.2%—making it the single worst day for Japanese stocks since 1987.
Other major global stock indexes were also hit, with South Korea’s KOSPI falling nearly 8.9%, Taiwan’s Taiex slumping 8.35%, Singapore’s STI Index down 4.7% and Australia’s ASX 200 dropping 3.7%.
The U.S. futures market was also in the red early on Monday, with Nasdaq Futures down 5% to 17,623.50 points, while S&P 500 Futures and Dow Futures fell 2.6% and 1.12% respectively.
The European markets also opened in the red on Monday with the London Stock Exchange’s FTSE 100 index down nearly 2% while the STOXX Europe 600 index fell more than 3%.
The CBOE Volatility Index, which is often referred to as the market’s fear gauge, was up 58.7% early on Monday to 37.12—it’s highest level since 2020.
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Tangent
The global market rout has also impacted cryptocurrency prices, with the price of Bitcoin falling below $50,000 on Monday before recovering to $52,778. In the past 24 hours, the world’s most valuable cryptocurrency has slumped more than 12.8%. The price of Ether slumped to $2,334, down nearly 20% in the past 24 hours.
Key Background
The U.S. economy added 114,000 jobs in July, according to the Labor Department’s monthly report released on Friday. This number was well below analysts’ predictions of 185,000 jobs. The country’s unemployment rate also rose from 4.1% to 4.3% last month, the highest level since October 2021. The poor job numbers raised concerns that the Federal Reserve may have waited too long to slash its interest rates, which have hit a 23-year high. The regulator kept its benchmark rate unchanged after a meeting last week, however, Chairman Jerome Powell said: “A rate cut could be on the table at the September meeting.”
Section Title
Nasdaq Tumbles Over 3% After Jobs Report Sparks Recession Fears (Forbes)
TikTok’s Chinese parent to sell the social media platform, Elon Musk’s handling of policy issues at X and the 2024 General Elections in India. Prior to joining Forbes, Siladitya worked as a reporter with the Hindustan Times and Medianama covering tech policy and consumer tech in India. He graduated from Columbia University with an MA in Business and Economics Journalism in 2019. Follow Ray for continued coverage on TikTok in the U.S., Elon Musk and X and other key developments at big tech companies. Tips: siladitya@protonmail.com. Forbes reporters follow company ethical guidelines that ensure the highest quality.
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